XM - What's now?
Leverage 1:888 does not apply to client registered under the EU regulated entity of the Group. The maximum leverage for Trading Point of Financial Instruments is 30:1.
XM does not close your open positions automatically, unless your live account’s “Margin Level” reaches to 20%.
“Margin is the amount of collateral to cover any credit risks arising during your trading operations.”
“Margin Level” indicates the percentage value based on the amount of accessible usable margin versus used margin.
In order to avoid further losses, XM’s system closes all open positions when the “Margin Level” of a live account reaches down to 20%.
The action is called as “Liquidation” and this is the measure to protect clients and the company.
In case the “liquidation” causes negative balances as a result, XM fixes the account balance to zero automatically. Thus protecting investors from exceeded losses, and investors never loses more than they deposit.